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2.6.3 Impairment
The Company assesses at each end of the reporting period whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are
incurred only if there is objective evidence of impairment as a result of one or more events that have occurred after the
initial recognition of the asset (a probable ‘loss event’) and that probable loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Objective
evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the
Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of
financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
If there is objective evidence that an impairment loss has been incurred on trade receivables or held-to-maturity investments
carried at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that have been incurred) discounted at
the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an
allowance account, and the amount of the loss is recognised in the income statement under provision for impairment.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised (such as improved credit rating), the previously recognised impairment
loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the income statement.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average
method. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable
selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed in the ordinary course
of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as
non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new ordinary shares are
shown in equity as a reduction, net of tax, from the proceeds.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 24 of 54
The Company assesses at each end of the reporting period whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are
incurred only if there is objective evidence of impairment as a result of one or more events that have occurred after the
initial recognition of the asset (a probable ‘loss event’) and that probable loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. Objective
evidence that a financial asset or group of assets is impaired includes observable data that comes to the attention of the
Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from a group of
financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
If there is objective evidence that an impairment loss has been incurred on trade receivables or held-to-maturity investments
carried at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows (excluding future credit losses that have been incurred) discounted at
the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an
allowance account, and the amount of the loss is recognised in the income statement under provision for impairment.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised (such as improved credit rating), the previously recognised impairment
loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the income statement.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted average
method. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable
selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed in the ordinary course
of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as
non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new ordinary shares are
shown in equity as a reduction, net of tax, from the proceeds.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 24 of 54
